IFC requires that this document is made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors. The Summary of Project Information (SPI) also provides details of where the ERS has been made available to the locally affected community. The SPI must be sent to World Bank InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor. The following potential environment, health and safety impacts of the project were analyzed. - Flight operations safety and security; - Maintenance-related hazardous materials, effluents, and waste management; - Dangerous cargo handling; - Aircraft noise and emissions control; and - Employee health and safety, including workplace exposure to chemicals.

Based on a review of technical and environmental information submitted by the company, TACA operates in accordance with industry standards and has presented plans to continue to address these impacts to ensure that the proposed project will operate in a manner so as its activities comply with applicable host country laws and regulations and IFC environment and social requirements. - Flight Operations Safety and Security TACA’s flight safety and accident prevention program complies with the El Salvador civil aviation authority’s (AAC) requirements, as well as with relevant U.S. FAA and ICAO standards. The company has a written safety and security policy that demonstrates a high level of commitment in this area. Pilots and relevant other employees receive extensive training in safe operations and accident avoidance. All TACA pilots undergo extensive training programs that meet or exceed FAA requirements. Required training is performed using simulators and flight instructors, and includes continuous and recurrent Controlled Flight into Terrain and Approach (CFIT-ALAR) and Crew Resource Management (CRM) trainings. Other safety program components include: accident research; flight operational data quality assurance; voluntary reporting system; incidents database; and an aviation safety committee. As part of its safety program, TACA maintains a database that stores all accidents and incidents that occur during ground and flight operations. The data include information on foreign object damage, ground and air turn-backs, in-flight shutdowns, etc. When an event occurs, the flight safety department investigates to determine the cause and if follow-up corrective action is needed to prevent reoccurrence, such as to revise pilot training programs, aircraft maintenance and the like. - Maintenance-Related Hazardous Materials, Effluents, and Waste Management TACA’s primary maintenance facility (Aeroman) at the San Salvador International Airport carries out both heavy airframe and line maintenance activities. Engine overhaul and APU repair is subcontracted third parties. Aeroman operations have received all applicable and relevant environmental approvals and permits required by the El Salvadoran regulatory authorities, including environmental authorities (MARU). Hazardous materials, such as paints, fuels, lubricants, solvents, hydraulic fluids, and other specialized chemical products, are classified according to their hazard characteristics, and appropriately stored in buildings and/or containers per recommendations from the respective manufacturer’s material data safety sheet (MSDS). Aeroman has established written procedures for ensuring that the handling of all chemicals in their facilities – warehouse, hanger maintenance, line maintenance and shops – is conducted with a view toward the minimization of environmental and health risks. Waste oils are collected and temporarily stored in underground tanks prior to recycling offsite via a licensed commercial contractor. Other wastes – empty containers, metal scrap, dirty rags – are appropriately disposed and/or recycled at government-licensed facilities in compliance with host country laws and requirements. Certain toxic and hazardous wastes are treated on-site to reduce their toxicity prior to disposal to minimize their environmental impact. Aeroman has established specific written procedures for the proper handling, segregation, storage, and disposal of all solid and hazardous wastes generated at their facilities. During the last three years, there have been no incidents or accidents involving releases of contaminants to the environment from air or ground operations. - Dangerous Cargo Handling From time to time, TACA carries goods characterized as dangerous cargo by the ICAO and the International Air Transport Association (IATA). Limited to only certain types of dangerous cargo on it’s passenger flights, TACA operates in compliance with the conventions, technical instructions, and standards of these international organizations, as well as with the legal requirements of the countries in which they operate. The company has an organization and procedures in place to ensure compliance, including the performance of biennial audits of its cargo handling operations. - Aircraft Noise and Emissions Control TACA’s Airbus fleet complies with noise guidelines and standards established by ICAO and the FAA. New aircraft will also have better fuel efficiency than the models they will be replacing, and thus generate reduced air emissions. - Employee Health and Safety TACA has an active occupational health and safety program, which is documented in an Industrial Safety and Hygiene Manual. Areas of coverage include: workplace air quality and respiratory protection; workplace noise controls and hearing protection; ergonomic risks and hazards; prevention of contact with dangerous equipment and moving parts and electrical hazards. Appropriate personnel protective equipment is provided. Maintenance facilities are designed and operated to protect the health and safety of employees, and accident prevention procedures are in place. Personnel participate in extensive health and safety training programs, including emergency response and fire fighting.

This ERS contains the full environmental and social documentation prepared for the project.

Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines.

IFC will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs) prepared for the project covering ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programs. Periodic site supervision visits will also be conducted.